NAB has announced it will pass on the RBA’s full rate cut to its mortgage customers.
The major bank says it will reduce its variable rate for home loans by 0.25 per cent.
NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 per cent per annum to 5.35 per cent per annum.
NAB group executive of personal banking Gavin Slater said the bank considers a range of factors when making the decision to change interest rates.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said.
“Today’s decision balances the needs of our home loan customers with our shareholders.”
The change applies to owner-occupier and residential investment variable rate home loans.
For owner-occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate), the rate will reduce from 5.60 per cent per annum to 5.35 per cent per annum.
For residential investors with NAB’s Variable Rate for Residential Investment Home Loans, the rate will reduce from 5.75 per cent per annum to 5.50 per cent per annum.
NAB will also reduce its rate on standard variable business rate lending products by 0.25 per cent.
The new rates will be effective from Monday, 16 May 2016.